THE North-East clothing manufacturing industry has suffered a heavy blow with the loss of 150 jobs at a factory.

Staff at Dewhirst, in Hendon, Sunderland, were told of the decision, which comes in the wake of bosses reporting a slump in orders.

Although a skeleton staff of 130 people will remain at the factory, the job losses are seen as the death knell for the city's ailing rag trade.

Michael Hopper, of the GMB union, said last night: "The feeling among the workers is one of shock and disappointment.

"Dewhirst has long been a big part of Sunderland's manufacturing heritage, but company bosses decided these jobs were no longer sustainable in this country.

"Once again, we have a situation where Wearside's clothing industry has taken a massive beating at the expense of workers who have shown nothing but loyalty and commitment over the years."

First established at Pennywell Industrial Estate, Sunderland, in 1973, Dewhirst became one of the city's biggest employers.

A year ago, 380 staff at Dewhirst's Pennywell site were told they were to lose their jobs.

Job losses are being blamed on manufacturers seeking to reduce costs by moving to countries where labour is less expensive.

The situation at Dewhirst in recent weeks has been made worse by a significant reduction in orders from Marks and Spencer for one of its menswear lines.

No one was available at Dewhirst for comment.